FTB numbers 'on the rise'
18th Apr 2012
The number of first-time buyers (FTBs) entering the UK property market is on the rise, according to the latest report from the Council of Mortgage Lenders (CML).
Data published by the organisation shows that lending to first-time buyers and home movers increased in February, with first-time buyers taking the bigger increase.
Some 14,100 loans worth £1.7 billion were taken out by FTBs in February, which is a rise of eight per cent in number and six per cent in value compared with January, and up 18 per cent by number and 21 per cent by value on February 2011's figures.
For the first time since April 2011, there was an increase in the proportion of income FTBs spent on mortgage interest payments, from 12.1 per cent in January to 12.5 per cent in February.
However, this still means mortgages for first-time buyers are much more affordable than as recently as 2008, when first-time buyers on average spent 19.6 per cent of their income on mortgage interest payments.
CML director general Paul Smee said it is "encouraging" to see the continuing year-on-year improvement in house purchase lending.
It now remains to be seen whether the government's NewBuy scheme, available to everybody buying a new build property, will help to prolong this trend.
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